DATE: December 20, 2022
TO: Honorable Mayor and City Council
FROM: Hue Quach, Administrative Services Director
By: Anely Williams, Human Resources Administrator
SUBJECT: RESOLUTION NO. 7476 APPROVING WAGE ADJUSTMENTS FOR
UNREPRESENTED, NON-BENEFITED PART-TIME EMPLOYEES IN
ACCORDANCE WITH CALIFORNIA’S MINIMUM WAGE INCREASE
EFFECTIVE JANUARY 1, 2023
CEQA: Not a Project
Recommendation: Adopt
SUMMARY
Former Governor Jerry Brown signed Senate Bill 3 (“SB 3”) on April 4, 2016, which increased California’s minimum wage incrementally over six years. In addition, SB 3 included a provision for annual cost of living increases to California’s minimum wage. In order to continue to comply with SB 3 and remain competitive in today’s labor market, it is recommended that the City Council adopt Resolution No. 7476 approving wage adjustments for unrepresented, non-benefited part-time employees to meet the expected minimum wage increase from $15.00 per hour to $15.50 per hour effective January 1, 2023. The recommended adjustments are projected to increase the City’s Operating Budget by approximately $20,000 for the remainder of Fiscal Year 2022-23.
DISCUSSION
Former Governor Jerry Brown signed SB 3 on April 4, 2016, increasing California’s minimum wage in increments of $1.00 per hour annually to reach $15.00 per hour on January 1, 2022. SB 3 also included a provision to provide potential annual adjustments to the minimum wage, as determined by the State’s Department of Finance, for inflation based on the national Consumer Price Index for urban wage earners and clerical workers (CPI-W). The maximum amount this increase could be in any one year is 3.5%.
The State Department of Finance has announced that the minimum wage will increase from $15.00 per hour to $15.50 per hour (a 3.33% increase), effective January 1, 2023.
Updating the part-time wage schedules to align with California’s new minimum wage will continue to ensure the City’s ability to attract, recruit, and retain entry level personnel.
Resolution No. 7476: 2023 Minimum Wage Increase
December 20, 2022
The proposed unrepresented, part-time wage schedules are attached as Exhibit “A” and Exhibit “B” within Resolution No. 7476. Exhibit “A” illustrates part-time positions with Non- CalPERS Retirement, while Exhibit “B” represents the part-time positions enrolled in CalPERS due to mandatory guidelines on ‘hours worked’ or having been vested in CalPERS from prior employment. Exhibit “A” reflects the same wage adjustments made to Exhibit “B”; however, Exhibit “B” includes a 7% increase for miscellaneous employees and a 11% increase for sworn employees to offset the employee pension contributions.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. As such, this matter is exempt under CEQA.
FISCAL IMPACT
The recommended adjustments are projected to increase the City’s Operating Budget costs by approximately $20,000 for the remainder of Fiscal Year 2022-23. At this time, no additional budget appropriation is requested as the projected increase can be absorbed in the Fiscal Year 2022-23 General Fund Operating Budget within the various departments affected by this increase.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7476 approving wage adjustments for unrepresented, non-benefited part-time employees in accordance with California’s minimum wage increase effective January 1, 2023.
Attachment: Resolution No. 7476